WNMU’s board was a textbook example of dysfunctional governance

A new year provides new opportunities for higher education governing board members to recommit to their roles as effective fiduciaries. Unfortunately, complacent and ineffective board leadership continues to inhibit progress at our nation’s colleges and universities.

One of the latest examples of insufficient leadership is playing out at Western New Mexico University (WNMU) in Silver City.

In late December, Gov. Michelle Lujan Grisham demanded the resignations of the entire WNMU Board of Regents in response to what state officials referred to as “fiduciary mismanagement” in their oversight of the spending habits of WNMU’s outgoing president, Joseph Shepard.

The Chronicle of Higher Education reported that an investigation by the state auditor found that President Shepard “took ‘extravagant’ international trips, stayed in lavish hotels, and purchased high-end furniture for the presidential residence, all on the university’s dime.”

In response, the board terminated President Shepard but gave him a severance package of approximately $2 million, with an additional $1.5 million in benefits, including a tenured position in WNMU’s School of Business.

Josh Moody of Inside Higher Ed writes, “Given how his contract was structured, the board could have fired Shepard without cause and parted ways with him for a little less than $600,000.”

The responsibility for the situation at Western New Mexico University lies with the Board of Regents for failing to carry out even basic fiduciary responsibilities. Above all else, the primary duty of the regents of public institutions is to the citizens of the state they serve. Board members are selected to provide oversight, accountability and leadership for their institution on behalf of the taxpayers who fund the institutions.

Governing boards are responsible for ensuring the financial well-being of their universities. They oversee the university’s spending habits and consider how to allocate resources properly and legally. This includes holding the president of the university accountable through regular assessments of his or her performance.

Compensation packages should be reflective of the results of the board’s evaluation. Not only did President Shepard’s improper use of taxpayer dollars happen under the board’s watch, but the regents have also further misused public resources by awarding an inordinate severance package to the outgoing president.

This is a textbook example of dysfunctional governance. The succeeding Board of Regents must demonstrate a renewed commitment to their role as fiduciaries in service to the people of New Mexico. Fortunately, the state Legislature seems to agree.

Recently, state Sen. Jeff Steinborn, D-Las Cruces, introduced Senate Bill 19, which would require all regents to complete 10 hours of training within their first year as a board member. The bill would require training in financial management, effective governance, and state laws concerning ethical oversight.

If passed, this bill will provide the state’s governing board members with the tools they need to be upstanding, effective fiduciaries and guardians of the public trust. New Mexico’s students and taxpayers deserve it.

This article was first published by the Albuquerque Journal on February 9, 2025.